The S&P Case-Shiller Home Price Index is considered among the leading measures of U.S. home prices. It has been collecting home price data for more than 30 years and covers all nine census regions. According to its most recent release, the index shows a year-over-year price gain of 4.8 percent, up from the previous month, when prices rose 4 percent. But while the index shows an accelerating price trend, it’s based on data through October, when conditions were slightly different than they are now. Brian Luke, head of commodities, real and digital assets at S&P, says recently falling mortgage rates may lead to further price gains. “Home prices leaned into the highest mortgage rates recorded in this market cycle and continued to push higher,” Luke said. “With mortgage rates easing and the Federal Reserve guiding toward a slightly more accommodative stance, homeowners may be poised to see more appreciation.” In other words, higher rates typically slow demand from buyers, which helps soften prices. As rates come down, it may push demand – and prices – even higher. (source)
